The Co-operative Group has been shopping at B&Q owner Kingfisher to find a new chief executive and has announced the surprise appointment of Euan Sutherland to replace Peter Marks.

In the wake of this year's acquisition of more than 600 branches from Lloyds Banking Group, the mutual was expected to hire an executive with banking experience to succeed Marks who retires in March. Sutherland, who until recently was in charge of the day-to-day running of B&Q, sits on the board of the Co-op's supermarket division. He will leave Kingfisher in March and formally take on the chief executive role at the Co-op in May.

The 43-year-old, whose career has included stints at Mars, Coca-Cola and Superdrug owner AS Watson, was considered a potential candidate to succeed Kingfisher boss Ian Cheshire.

Sutherland will take the helm of the Co-op at a crucial time with the mammoth task of integrating the Lloyds branches into its banking operation expected to take between three and five years. Its supermarket chain, which last year contributed more than half of the sprawling group's profits, is also finding life harder and despite the 2009 acquisition of Somerfield is losing market share as rival chains target the convenience retail market.